Power generation company Globeleq Ltd will pick up a 74% stake in an existing Nigerian power business as it expands its footprint in the African continent.
Globeleq will buy the majority stake in CPGNL Ltd, which will be rebranded as Globeleq Power Solutions Nigeria Ltd. The current owner of the business, the Clean Energy Group, will retain the remaining 26% stake.
Clean Energy is led by Deepak Khilnani, who has built an infrastructure business in Nigeria with a focus on gas and solar projects. The group also has an engineering, procurement and construction business (Gentec) and a gas distribution company (Powergas). It has a large share of compressed natural gas distribution and independent power plants in Nigeria.
Khilnani was a former member on the Oil and Gas Advisory Board of UK Trade & Investment and currently serves on the board of Pratham, one of India’s largest education charities.
CPGNL has a portfolio of assets serving commercial and industrial customers mostly in the southwest of Nigeria. These include 12 operating plants with a total capacity of 58 MW, three plants under construction (9 MW total capacity), as well as approximately 100 MW of projects in development.
Founded in 2002, Globeleq is owned by UK development finance institution CDC Group Plc (70%) and Norwegian private equity fund Norfund (30%).
Globeleq is headquartered in London and has regional offices in Nairobi, Cape Town and Douala. It has 13 power plants located in Tanzania, South Africa, Côte d’Ivoire, Cameroon and Kenya. The assets currently generate more than 1,400 MW. It has projects totalling 2,000 MW in development.